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The Office of Fair Trading (OFT) has referred Apple's iTunes service to the European Commission on grounds that it overcharges UK customers.The move follows a complaint from Which? that iTunes charges UK users 20% more than those in France and Germany.
Which?, formerly the Consumer Association, also complained that the UK customers were barred from logging on to the French and German sites.
Syzygy
Since when do crooks need an excuse to be crooks?
2nd point, it is debatable who the real crooks are in this situation.
Prices in the US for goods can vary from one side of the street to the other and national chains charge dramatically different prices based on the regional economies. Is this a uniquely American idea?
Which?, formerly the Consumer Association, also complained that the UK customers were barred from logging on to the French and German sites.
This is the bigger issue as it contravenes one of the four key 'Freedoms' of the European Union.
The four Freedoms are: Freedom of movement of goods, services, money & people (labour)....
In the EU we have a right to source and buy from wherever we choose within the Member States. To be denied that right is, effectively, illegal.
That's it - it's as simple as that.
Whilst, as has been stated, local economics do affect regional prices, you cannot deny me my right to buy from somewhere that offers the same goods or services at a cheaper price..
That is the theory of the principle & the law in this context.
Syzygy
So it seems that, legitimately, the price differences can exist. The real issue is allowing the user to "pick" what countries iTunes Music Store their computer should access.
What about copyright law? Doesn't the licensing rights assigned by the publisher and/or artist only apply apply on a country-by-country basis? And those licensing rights could differ from country to country depending on what the publisher/artist sets?
If that's true, isn't any music sales company required by existing intellectual property law into segmenting their customers by country? Or is the EU considered a single entity regarding copyright law? I wonder how Virgin handles this...
I'm sorry for asking all these questions, I just have no clue whatsoever how this works. (Maybe there's a site somewhere I could be pointed at that has a EU IP law primer for the ignorant like myself.)
And heck, this is Foo and I'm trying to learn something. :P
As the article states:
Ed Averdieck, European sales and marketing director for OD2, which runs music download sites for everyone from HMV to Wanadoo, Tiscali and MTV, said there was no reason why firms should charge UK customers anymore than those on the continent.
Emphasis added
This will be an interesting scenario to follow as it develops.
Personally, I don't download music - I'm still buying vinyl..;-)
Syzygy
